Real Estate Agents Are Being Wiped Out By The Ongoing Housing Crisis
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- เผยแพร่เมื่อ 8 มิ.ย. 2024
- The U.S. housing market is so crazy right now that real estate agents are literally going broke as sales activity freezes all over the country. As it turns out, the Federal Reserve's bid to cool inflation by leaving interest rates higher for longer is absolutely choking the nation's real estate market, not only by pushing millions of prospective buyers out of the market, but also by forcing realtors to rethink their place in the sector.
New reports highlight that high borrowing costs for home loans have depressed demand for homes in the U.S., a trend that has started to be observed in throughout 2022 and 2023, and continued to accelerate in 2024. Last year, sales of previously occupied homes actually fell to their lowest level in 28 years, according to the National Association of Realtors.
Consequently, tens of thousands of real estate agents have abandoned the industry in recent months, data released by the Bureau of Labor Statistics shows.
As recently as 2021, when the average long-term mortgage rate was around 2.6%, 549,000 people worked full-time as real estate agents. Today, there are less than 440,000 real estate brokers and sales agents in America, a decline of more than 70,000 professionals.
At the moment, mortgage rates are more than double what they were just a few years ago, the supply of homes is at historic lows and prices are at record highs, dissuading buyers from getting into homeownership.
The sluggish housing market means business has slowed, and now many realtors that earned hefty sums in commissions during the pandemic are struggling to make a living.
During an interview with The Washington Post, Florida-based real estate agent April Strickland revealed that there are more realtors working in her Gainsville market than homes being sold. "Quite frankly, realtors are running out of money," Strickland stressed.
An analysis by the Consumer Federation of America in January found that nearly half of the real estate agents sampled had sold one or no homes the previous year. Part of that is because many realtors work had to take a second job to make ends meet, researchers noted.
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I honestly don't see myself going into the housing market though, stock trading has been my best passive income from the first time I bought my house through trade and not salary
Congratulation 🎉 🎊
The disadvantages in house marketing are actually much, especially the lies that comes with it fr
Congrats. Its satisfactory and Encouraging to know that you are winning keep it up
Most times I live with doubts and fear of losing before executing trades but not that way with house marketing.
Exactly, the common experience by traders especially newbies is fear of losing money I passed through all this routes in trading.
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ’’Aileen Gertrude Tippy’’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Aileen.
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
With the US dollar losing value to inflation and other currencies gaining traction, uncertainty looms. Yet, many still trust in the Dollar's perceived safety. Worried about my $420,000 retirement savings losing value, I seek alternative security for my money.
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this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Linda Aretha Reeves is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
6% is ridiculous.
6% interest mortgage rates is not ridiculous. Looking at past interest rates 6-8% was normal up to 2008. The median over all is 7.4%. So having interest rates lower then that is unusual. The main issue is that houses have shot up to way more then what their actual value should be.
@@Twotone-ld1fb I wasn't talking about interest rates.
@@bighoss8793well wtf else could u be talking about
@@TruckerLeronehe was talking about the agent fee for selling the property. Even 2% in the UK UK is deemed as high. Going Tate seems to be either 1.5% or flat fee.
Real estate agents might as well look for another job it's going to be a long time before they start selling houses again everybody's broke
i will never pay 7% for what a fool can DO
They will have plenty. The local governments are doing their best to tax the elderly out of their home.
WE do not need them
They need to do "real" productive work & get out parasitic activities.
This is why I am so happy with my spacious 4 person tent and easy push shopping cart, paying no interest or commissions.
Good, all agents need to be paid either a set amount or hourly. Just because I sell my home for 800k doesn't mean that you're entitled to 48k of my money for barely any work. The fact that an agent can essentially sell 2 to 3 homes a year and make over 100k is absolutely ridiculous. That's money stolen from both the buyer and seller.
Exactly!!! Enough of this total nonsense!!! 👍👍👍👍
Yup. Your spot on correct 😊
It's about time real estate agents change their ways. They have RIPPED off WAY too many people for a long time
Damn right! I agree! KARMA!
@@andrewgleason586 💯 agree
What Goes up Must come Down. There are now a Surplus of Over-priced Homes and Apartments and yet the Builders keeps building trying to keep Hope alive
It is the same as buying a car. We get robbed
Scam artists face hardship? Damn son
I wish I could feel sorry for them, but I dont. They should not have sold or even shown houses to investment firms. They have bought quite a bit of the housing market and now control it, from pricing, to even if you can buy one.
They are the reason we are in this housing crisis.
An agent can’t stop a seller from doing that unless the seller requests. That would be a breach of fiduciary duty
@@LJMarte8 And that is why no one can buy affordable homes. In Las Vegas an investment firm bought 342 homes at one time, so that is lots of people out of a home and now that entire area will have the prices set by that group.
Our narrator is fantastic: he makes me love even a tragedy!!!!
We love Doctor Doom! He's the whole reason most of us come here! 😊
A I?
6% commission is unjustified. Websites list the homes. Agents open the front doors and process the paperwork. Their actual role is minimal.
In Australia the average realtor gets 2% of the sales price which is more than enough but you can negotiate as well
Maybe they can learn to code.
😂😂😂😂 petty
Lesson learned is do not live beyond your means. When they issue the stimulus checks (which was a joke; the monies provided would not sustain a middle class person for long at all). I knew something was brewing in the background. And it helps that I listen/read different financial projections. Soooo I chip away at paying down my credit cards and outstanding debt. I froze borrow spending. I am not saying that I am in a position that I would like to be in. But I will say that I am not drowning in debt.💁🏽💯
That's the game... staying afloat. ....
1,200 a real pittance!!!
Agents! the picnic is over.. now time to earn your keep
Doctor Doom! He's our man! If he can't scare us, no one can!! 😅
ARE YOU ON MEDS OR INBREEDING STOOGE
ITS AN INDUSTRY PRIME FOR Ai - ABOUT TIME
This is another sign of the extinction of the American dream
The American dream isn't dead, just changed. Now the American dream is to leave America 😂
That’s why they started no money down again
Thanks for the insight
No one will ever move again !
Bought my house at a great price, great rate, knocked years off the life of the mortgage three years, we have the double homestead exemption, we haggle with home owner's insurance. We're good
I could care less if a agent gets paid less.. they are the problem with the market as it is selling high priced at as is sale. smmfh. retail renters have to take care of all the maintenance the building has and you don't own the property smmfh
75% of realtors fail within the first year. That number jumps to 87% after 5 years. Agents have always had fierce competition.
2 things I can't understand: People from California and the North are (& have been) moving to South Carolina, primarily the Greenville area. They come with alot of money and go into bidding wars over these houses since cost of living is so much cheaper here than there. They're selling their houses where they came from so obviously the market is not that bad. The housing market is ridiculously over-priced here. Greenville has been overrun with people, it's spreading out all over Greenville County, and taxes have soared unbelievably. Used to be a great place to live, in a few years it will be just like Atlanta, Chicago, New York City - all the places you don't want to live.
#2: Used to have horses till I got older and health issues kept me from riding anymore. Yet I still look at the market and see horses priced 5 to 15 times higher than they're worth, and they are being sold for that price. What should be a $2,000 horse is now going for $10,000. What was a $5,000 horse is now going for $35,000! It's crazy - Horses are a luxury, not a necessity, and they are expensive to keep. It doesn't take a rocket scientist to realize there are still alot of people out there with money.
Our congress has no idea how we Americans are feeling, we individuals are fed up with this treasonous administration. I feel for people with disabilities for not getting the help they deserve... Thank you Sarah Hudson.. imagine i invested $4,000 and received $6,550 in 4days.
I firmly believe everyone striving for financial independence should own both coins and real Estate. The percentage weighting of each asset class as part of your portfolio will then be up to you to decide.
Multiple streams of income should be applied because from the CNCB quarters recently their newscaster made it known that If you don't find a means of multiplying your income you will wake up one day to realize you didn't plan well
President Bill Clinton 'I feel your pain!' He would really say that!
Getting Sarah Hudson to help me really helped me clear all my debits. I started with what I have left and it's been the best decision I ever made
Same here, I operate a wide - range of investments with help from my financial advisor. My advice is to get a professional who will help you, plan and enhance your management skills. For the record, working with Sarah Hudson, has been an amazing experience.
Most make or lose $ by investing in RE. Commissions after the splits and costs are not much. Don't expect to earn a living as an agent in a bad market.
Automation, computers, robots, the internet and A-I are destroying all jobs. All of them.
And Gen Z
AI CEOs next
So the people who caused the problem are starting to pay for it. Good. To bad everyone else is paying for it too.
Real Estate agents are predators.
So true, we have had sold and bought homes over the last 20 years, and we have had more horrible experiences with crooked agents than good. There are some good agents out there, but every one of them only thinks about commission and selling the home, and you cannot be in that business and not become "corrupt" to some extent, because they still have to work with greedy, corrupt agents, and they eventually give in to the same, to make the sale.
Prices are not coming down in popular locations. These new rules just leave home buyers open to being taken advantage of and missing out on benefits, solid negotiations and perks they otherwise would have representation for. Most home owners are staying put as long as they possibly can to not lose their low interest rates enjoyed for many years.
*Man this is sad somebody do something quick. Everybody knows nobody works harder for their pay. Realtors rank right up there with Search and Rescuers and Underwater Welders. Somebody start an Emergency Fund for these head-down hard workers. Wouldn't want one of them to lose a LEXUS. That'd leave them with a **_Bakers Dozen._*
You Illustrated your point very well.
I'll tell you where there needs to be legislation and or regulation is regarding what a so-called pre-sale home inspector can charge. When I bought my home in 2017 I paid a so-called home inspector $1,000 for a twenty-minute shoddy inspection that lacked pointing out numerous defects in the house I purchased. I remember thinking at the time that I had never felt so ripped off.
Good grief, that was back in 17? Wow. Yes, that’s so crazy. In my area they were charging $400 for an inspection and it usually took about 3-4 hours. In the buying frenzy they raised their rates, like appraisers. I’m a contractor and do repairs these guys call out. Many times when I meet the real estate agent at the house, I will find problems with their inspection, like non existent dry rot, non existent code violations and on and on. I’m not the type that raises my prices just because I might be in demand. I couldn’t sleep at night if I ripped people off.
My dad is in a trucking bussiness!! Its soo bad right now!!! No loads and if u get a load its to cheaaap
About time they do something about the realtors, they are bad news!!! We do not need threm. They could care less about you all they are interested is in the commission without doing anything. Most of them have made me lose thousands of dollars!!! Goodbye and good riddance!!!
Do any of us homebuyers get a refund from realtors for past purchases?
Same here in the uk
Greed happens to Americans who pay high prices. Now it falls.
Interest rates are too high
No one is buying right now.
Also prices are still rising in rural areas.
I got feeling IT TOO LATE for Trump to do anything.
We will have pain but he at least get us on a path to recovery
Didn't he reverse the Dodd's- Frank act? 🤣 I'll just mark you down as another jackass
Trump is going to save the economy? He's the reason it's like this in the first place 🤣
No trump is not going to save us ,it’s bigger than trump,the election is to keep you busy an hopeful ,this is all by design 🙏
@@KimTrails999 that guy is a disaster,vote 💙💙💙
Glad it is changing - should be better for both buyer and seller - and bring prices diet!
Ha Ha Greedy Real Estate agents. Welcome to America
I saw in my research majority of realtors only sell 1-3 houses per year with an average of $40k-$50k per year. I saw a breakdown of pay also where realtors have to pay 20% of their 3% to their brokerage for affiliation, 1 to 2% to the national association, 25% to IRS and pay for any other cost like gas/tolls/marketing. That sounds pretty brutal and not a lot of money if you ask me. Sounds like the big brokerages should have to cut back since they’re taking so much of the pie and leave most realtors broke.
Lots of people have the idea that whatever the seller pays in commission the agent pockets. You’re so right, 24 years ago I got my license and my principal broker took 50% until I reached a certain amount. I paid all the expenses, like advertising, etc. Back then if I was lucky my gross commission check might be $900-1100. Twice a month if I was lucky.
What's the point of looking for a job when I'm going to get fired anyways?
Yessssssss...It's a beautiful thang 😍
They're useless.
As a real estate agent in Cleveland Ohio it is very difficult with the downturn in housing stock in the area it is especially hard even with incentives to get qualified buyers in this market with new construction and the uptick and the Renaissance of Cleveland I still am optimistic that better days are ahead.James Jerome Bell, Dream Team Realty.
Yea yea you guys are doing bad, here in croatia to buy normal house i would need to be in debt for 40 years and even with that many years it will take 80% of my paycheck everysingle month!
I come here to be UPLIFTED!
and never disappointed!
😂
A similar thing happened in 2009 during the last RE crash.
Why do we need them? Everything can be done online
We don't that many
Phoenix has become unaffordable. Next short 100 years it will be uninhabitable. Too darn hot
How do most of you guys still making profit? Even with the downturn of economy and ever increasing life standards
Well, I picked the challenge to put my finances in order. Then I invested in cryptocurrency and stocks, through the assistance of my discretionary fund manager
Mrs Mary Patricia Hester
This is correct, Mary's strategy has normalized winning trades for me also, and it's a huge milestone for me looking back to how it all started..
Isn't she the same Mrs Mary Patricia Hester neighbors are talking about, she has to be a perfect expect for people to talk about her so well.
Her platform is wonderful, and her services are exceptional
Vultures! Million $ producer is now a single house (1.500-1,700Sq Ft sale in Compton LA!!!!!
I guess I’m gonna have to wait in buying a house now.
Hmm I can see why a real estate agent in New York might be struggling. They should go to Texas or Florida.
The Fed needs to stop pussy footing with these rate hikes and really hike the rate. That'll get them to that 2% they want so bad
The dollar is worthless. 700k for a stick home is too comical. Live in the woods for free.
next episode on loan officers out of work
not need pay cash like me and thats it
When these realtors quit the business it means they will start competing with your jobs so it’s a no win situation
The problem is are leadership greed not a foreign country
The disaster and insanity keeps growing and growing.
Just hang on, eat noodles 3 times a day for 3 half years then the market will start to improve, some agents may have to improvise by moving into an big cardboard box for a few months
And drop the lease on the fat big Cadillac sitting in the driveway
Love this channel 🇺🇸
Real estate agent - someone - the ONLY person - you trust to navigate a million dollar deal? An agent that's taken a couple of classes, with no degree. Does that sound a little bit foolish?
When my neighbor who is a convicted felon, a gang member and has spent lots of time in prison, and he’s usually unemployed when he became a real estate agent, I realize anybody can do it! I’m talking to a guy who is ultra irresponsible and he still lives with his mom and he says mid 30s. Lots of tattoos does lots of drugs smokes. Lots of weed gets arrested by the cops all the time and he’s a real estate agent.
And he is one of the honest ones!
#PricesAreWayToHighForLessSqFootagesThatNeedExtensiveRepairs!!!!!!!
LOL IDC go get a real job. Real estate agents made it impossible to sell by owner.
Imagine buying a 250k at 0% house now... thats going for 500k at 10% but the material and land only worth 100k... lol greed is a fucked up muse
Forgot to say, Good
If you can't afford the american dream, you can't afford to show respect for the usa
no kids no debt buy a nice rv sum nicer then homes
DILLIGAF ?
Asta la vista!
36 years doing this and you need a second job? You really have no idea whatsoever how to manage money.
Can confirm.. 😢
OH GEE! THE PROFESSIONAL LIARS LIKE USED CAR SALESMEN MIGHT HAVE TO WORK FOR A LIVING! IMAGINE THAT!
Ai took your Real Estate Agent you were a high paid middle man anyway no more ,time to get a real job Real estate man Collage is a joke 200.000 year to work at jack in the box for 20.00 and hour the fall of the middle class has begun look at the poor your headed down that same road.
A strong signal to where housing is headed.. Adult diapers are out selling baby diapers. In the future there be many empty homes around.
Don't mind me folks, I'm just here for my daily dose of DOOOOOM!!!
Bootstraps
rip USA july 4th 1776 - dec 23rd 1913
THE TRUTH THE TIME THEY STOLEN WITH UK NAZI ROYAL FOOL FOILS WITH THE VATICAN
Exactly
Realtor needs to pay at minimum wage now!😊
Most agents are good looking women so they can get married or just stay home and cook.
Vote R or vote L has never worked for citizens. What we need is a poor Robinhood type from the struggling citizen gang. Not the gazillionaire gang. But that will never hsppen
You don't know what you're talking about the market sets the price
The market can only set prices if the market is able to determine interest rates. When the interest rates are controlled by a single entity, they control housing prices by controlling interest rates.
When the Fed sets interest rates higher, the monthly payments stay the same for first time home buyers stay the same, but the mortgage size shrinks, which shrinks the offer price, the opposite happens when interest rates are slashed, borrowers have more buying power to get the same monthly payment, thus increasing the price of the home.
Joe Biden, the DNC, Blackrock and Larry Fink for the win.
Being a realtor is a gamble. When homes are selling you make your money and save it.
5 hot years then bust so you need money for thoise 5 years. Stop crying
YUPPERS 😂
well, next time vote republican
There are people who cut themselves on purpose. they are called Democrats.
👍💐
You don't know what you're talking about when it comes to real estate agents why don't you go after the lawyers and the doctors
The rich stay rich by spending like the poor and investing without hesitating then the poor stay poor by spending like the rich yet not investing like the rich
I'm favoured financially, Thank you Jesus.$32,000 weekly profit regardless of how bad it gets on the economy.
I'm celebrating a $30k stock portfolio today. started this journey with 6k. I have invested on time and also with the right terms now I have time for my family and the life ahead of me
Do you invest with a professional broker? I'd appreciate it if you show me how to go about it.
when someone is straight forward and good at what she does best. People will always speak for them. For me I would say give Mrs Lauren Simmon a try and you will be happy you did
I'm 37 and have been looking for ways to be successful, please how??
ZZZZZZZZZZZZ👋🏻
Shout out to the Biden supporters ya’ll my enemy!
Still 400,000 too many. Worthless, greedy and over paid. Your ALL fired 😊